Land bank to pay farmers

THE North Gauteng High Court has ordered the Land Bank to pay R3,6million to five farmers, plus 15,5% interest a year from the date of summons for the overcharging of interest.

Judge WRC Prinsloo on Friday said the Land Bank had charged compound interest from its clients instead of simple interest.

The farmers had sued the bank for the overcharging of interest on their agricultural loans. The Land Bank also filed special pleas of prescription in certain matters - accounts that have been repaid by farmers more than three years prior to the date the summonses had been issued.

Economist Dawie Roodt testified that he could not find any market-related reasons why the Land Bank increased interest rates "out of the norm".